Property Investment is one of the most reliable ways of protecting your finances for the future. It provides access to a source of income both now and in the future. However, as beneficial as property investment may be, many people find that buying an investment property is also complicated.
Thankfully, for every problem that people who invest in property experience, there is always a solution to be found. If you have an investment property – or are considering purchasing one soon – then here’s how you can overcome three issues you may experience in the future…
Common Property Investment Issues And How To Fix Them
#1 – Over-attachment to the investment property
A considerable number of property investors find that they become overly attached to their investment property. This is entirely understandable. It is, after all, your investment and the future of your finances. But it can make life difficult for tenants, especially if the over-investment manifests as continually checking on the property or providing long lists of rules.
The best way of overcoming the over-investment issue is to be as hands-off as you possibly can. The more divorced you are from the property, and the less you have to visit it, the better. You can simply turn to the lines of mcgrawpropertymanagement.com to manage the property as per your specifications. Then you can essentially push it to the back of your mind. This will relieve one property investment issue.
#2 – Under-occupancy
Many property investors find themselves in a bind. They’ve got a property to rent, but they just cannot find tenants who wish to rent. As a result, the investor finds themselves paying the mortgage on their rental property from their own funds rather than collecting rent. This can place a burden on their finances. This is the second of the issues of property investment.
Realistically, all property investors have to accept that under occupancy can and does happen. Even the best properties will experience occasional low periods. The solution to the issue of under-occupancy is not actually found in the property itself but your own flexibility. You could, for example, consider renting your property out for short-term stays if you cannot find a long-term tenant. Or you could even just rent the driveway or storage space. These short-term fixes can help to ensure the property’s mortgage is always paid and that your family’s finances are always secure.
#3 – Damage caused by tenants
Even the best tenants can cause accidentally damage a property. This can leave you with expensive repair bills that eat into your rental profits. In truth, there is relatively little that can be done to prevent this damage. It’s a simple fact of life that accidents happen, unfortunately. It is the third issue of property investment.
However, you can mitigate the risk of damage with a few measures. First and foremost, let the property on an unfurnished basis. The less there is in the property to damage, the better. Secondly, it’s worth opting for higher quality fixtures in your property. Many landlords opt for “cheap and cheerful” when it comes to countertops, bathroom sets, and similar items, but this can actually be a false economy. “Cheaper” tends to mean “easier to damage”, which means you may have to replace them more frequently. Finally, landlord insurance can help prevent you from having to fund substantial repair bills. Thebalance.com has a great rundown of options you may want to consider.
Property management is rarely without the occasional hiccup. The above demonstrates that the most common issues can always be solved. Should the 3 issues of property investment mentioned above show up in your future you now know how to handle them correctly. With a bit of maintenance and good decisions before you start you are well on your way to successful property investment future.